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We got our churn rate from a whopping 12.3% peak down to 2.7%. I'm the founder of Stagetimer, a bootstrapped $10k+ MRR B2B app and this is how we reduced our churn sustainably in 3 steps, and the lesson learned... 👇Permalink On twitter.com
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Step 1: Analyzed why people churn. Found no. 1 reason is usage pattern of our product. Most people use it for a single event and then cancel. We already had a dedicated 10-day "Event" plan, but users preferred the 30 days of the monthly plan.Permalink On twitter.com
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Step 2: Asking ourselves "Is churn bad?" A: Yes. Of every 10 users, one forgot to cancel and either got mad at us and/or requested their money back. -> Huge extra customer support and refund feesPermalink On twitter.com
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Step 3: We made changes to pricing: -> Remove monthly subscription -> Extend "Event" plan to 30 days (no recurring payment) -> Keep yearly plan as isOn twitter.com
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Result: Churn went down from 12.3% to 2.7%. MRR growth down also, but still net positive. Overall revenue stayed the same. Less customer complaints -> More happy customers!Permalink On twitter.com
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Lesson: Everyone wants subscription revenue but in the long run it's better to choose the type of pricing that works best for your users.Permalink On twitter.com